Business models and stock exchange performance : empirical evidence

In recent years stock exchanges have been increasingly diversifying their operations into related business areas such as derivatives trading, post-trading services and software sales. This trend can be observed most notably among profit-oriented trading venues. While the pursuit for diversification is likely to be driven by the attractiveness of these investment opportunities, it is yet an open question whether certain integration activities are also efficient, both from a social welfare and from the exchanges' perspective. Academic contributions so far analyzed different business models primarily from the social welfare perspective, whereas there is only little literature considering their impact on the exchange itself. By employing a panel data set of 28 stock exchanges for the years 1999-2003 we seek to shed light on this topic by comparing the factor productivity of exchanges with different business models. Our findings suggest three conclusions: (1) Integration activity comes at the cost of increased operational complexity which in some cases outweigh the potential synergies between related activities and therefore leads to technical inefficiencies and lower productivity growth. (2) We find no evidence that vertical integration is more efficient and productive than other business models. This finding could contribute to the ongoing discussion about the merits of vertical integration from a social welfare perspective. (3) The existence of a strong in-house IT-competence seems to be beneficial to overcome

Data in Business Process Models. A Preliminary Empirical Study

Traditional activity-centric process modeling languages treat data as simple black boxes acting as input or output for activities. Many alternate and emerging process modeling paradigms, such as case handling and artifact-centric process modeling, give data a more central role. This is achieved by introducing lifecycles and states for data objects, which is beneficial when modeling data-or knowledge-intensive processes. We assume that traditional activity-centric process modeling languages lack the capabilities to adequately capture the complexity of such processes. To verify this assumption we conducted an online interview among BPM experts. The results not only allow us to identify various profiles of persons modeling business processes, but also the problems that exist in contemporary modeling languages w.r.t. The modeling of business data. Overall, this preliminary empirical study confirms the necessity of data-awareness in process modeling notations in general

Method of Business Organization in Bosnia and Herzegovinian Companies

Business organization can be based on science or empirical method. Science method is based on organization models and definitions from literature and empirical method is based on experience in doing business. We will research which method is used in Bosnia and Herzegovina companies. Our research objects were four companies which are temporarily the best in Bosnia and Herzegovina, Energoinvest dd Sarajevo, Energoinvest SUE, Energoinvest TDS, Butmir d.o.o. Our goal is to investigate all elements defined in this model. If those elements are in accordance with definitions and models from literature it means that business organization is based on science method. Company who follow science method can be considered as serious company and important actors on EU market in process of European integrations.7s model, EU business, business organization, science method, empirical method

The digital transformation of business models in the creative industries: A holistic framework and emerging trends

This paper examines how digital technologies facilitate business model innovations in the creative industries. Through a systematic literature review, a holistic business model framework is developed, which is then used to analyse the empirical evidence from the creative industries. The research found that digital technologies have facilitated pervasive changes in business models, and some significant trends have emerged. However, the reconfigured business models are often not ‘new’ in the unprecedented sense. Business model innovations are primarily reflected in using digital technologies to enable the deployment of a wider range of business models than previously available to a firm. A significant emerging trend is the increasing adoption of multiple business models as a portfolio within one firm. This is happening in firms of all sizes, when one firm uses multiple business models to servedifferent markets segments, sell different products, or engage with multi-sided markets, or to use different business models over time. The holistic business model framework is refined and extended through a recursive learning process, which can serve both as a cognitive instrument for understanding business models and a planning tool for business model innovations. The paper contributes to our understanding of the theory of business models and how digital technologies facilitate business model innovations in the creative industries. Three new themes for future research are highlighted

Determinants in the on-line distribution of digital content: an exploratory analysis

This article shows the phases – and discusses the results – of an empirical analysis addressing the legal business models that are adopted online to distribute digital content

How Models Fail. A Critical Look at the History of Computer Simulations of the Evolution of Cooperation

Simulation models of the Reiterated Prisoner's Dilemma have been popular for studying the evolution of cooperation since more than 30 years now. However, there have been practically no successful instances of empirical application of any of these models. At the same time this lack of empirical testing and confirmation has almost entirely been ignored by the modelers community. In this paper, I examine some of the typical narratives and standard arguments with which these models are justified by their authors despite the lack of empirical validation. I find that most of the narratives and arguments are not at all compelling. None the less they seem to serve an important function in keeping the simulation business running despite its empirical shortcomings

Measuring Business Cycles: A Modern Perspective

In the first half of this century, special attention was given to two features of the business cycle: (1) the comovement of many individual economic series and (2) the different behavior of the economy during expansions and contractions. Both of these attributes were ignored in many subsequent business cycle models, which were often linear representations of a single macroeconomic aggregate. However, recent theoretical and empirical research has revived interest in each attribute separately. Notably, dynamic factor models have been used to obtain a single common factor from a set of macroeconomic variables, and nonlinear models have been used to describe the regime-switching nature of aggregate output. We survey these two strands of research and then provide some suggestive empirical analysis in an effort to unite the two literatures and to assess their usefulness in a statistical characterization of business- cycle dynamics.

Business Cycles, Political Incentives and the Macroeconomy: Comparison of Models

Politicians and political parties are faced with the problem of being elected into power, and later, of being re-elected. These political ambitions are often fuelled by policies that affect the entire economy and business cycles. The purpose of this paper is to compare the various models used to describe how political decision-making may affect business cycles. Both opportunistic and partisan models, and exchange rate manipulation are examined, and empirical evidence is used to view the validity of the models.business cycles; partisan models; opportunistic models; politics

Entrepreneurship and Role Models

In the media role models are increasingly being acknowledged as an influential factor in explaining the reasons for the choice of occupation and career. Various conceptual studies have proposed links between role models and entrepreneurial intentions. However, empirical research aimed at establishing the importance of role models for (nascent) entrepreneurs is scarce. Knowledge of the presence of entrepreneurial role models, their specific functions and characteristics is therefore limited. Our explorative empirical study is a first step towards filling this gap. Our study is based on the outcomes of a questionnaire completed by a representative sample of 292 entrepreneurs in three major Dutch cities - entrepreneurs who have recently started up a business in the retail, hotel and restaurant sectors, business services and other services. We provide indications of the presence and importance of entrepreneurial role models, the function of these role models, the similarity between the entrepreneur and the role model, and the strength of their relationship.

Exporter Performance in the German Business Services Sector: First Evidence from the Services Statistics Panel

A wide range of empirical studies has analysed exporter performance, especially the relationship between exports and productivity in the manufacturing sector. By contrast, a detailed investigation of the services sector has remained largely neglected. To close this gap, this paper focuses on the relationship between exports and several performance characteristics in the German business services sector—average wage, productivity, size and turnover profitability—in order to determine whether export premia and self-selection into export markets exist in the business services sector. To ensure the comparability of the results with those from the manufacturing sector, empirical models used to analyse the manufacturing sector are transferred to investigate the business services.export premia, self-selection into export markets, business services